Brad Suffers from Congestive Heart Failure and Has Been Admitted

question 31

Multiple Choice

Brad suffers from congestive heart failure and has been admitted to a nursing home where he is expected to spend the remainder of his life.His doctor has certified him as chronically ill.Brad receives $320 per day from his life insurance policy for 100 days ($32,000) as accelerated death benefits.Brad's nursing home care costs $300 per day ($30,000 for the 100 days of care) .Brad will be allowed to exclude

• A)$0.
• B)$30,000.
• C)$32,000.
• D)$2,000.

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Definitions:

Credits

Accounting entries that increase liabilities or decrease assets, typically reflecting the sources of value in transactions.

Accounts Payable

Liabilities to creditors arising from purchases of goods, services, or loans, representing amounts a company owes and must pay in the near term.

Buildings

Structures such as offices, warehouses, and factories owned by a company for the purpose of conducting business operations.

Chart Of Accounts

A systematic list of all account titles and numbers used by a business to organize its financial transactions and prepare financial statements.